Program Funding Plans - ADS 202.3.7 - FAR 16.306 (d)(1)

USAID’s Automated Directives System (ADS), chapter 202.3.7, states that the USAID mission or office and its assistance objective (AO) teams [1] are responsible for managing the resources made available to them so that planned outputs and results are achieved in a cost-effective and timely manner, in accordance with applicable regulatory requirements.

Federal Acquisition Regulation (FAR) 16.306 (d)(1) states that a cost-plus-fixed-fee completion form contract describes the scope of work by stating a definite goal or target and specifying an end product. This form of contract normally requires the contractor to complete and deliver the specified end product (e.g., a final report of research accomplishing the goal or target) within the estimated cost, if possible, as a condition for payment of the entire fixed fee.

However, if the work cannot be completed within the estimated cost, the government may require more effort without increase in fee, provided the government increases the estimated cost.

[1]An AO team is a group of people with complementary skills who are empowered to achieve a specific foreign assistance result for which they are willing to be held accountable (ADS 200.6(b)).

Source: AUDIT REPORT NO. 1-511-11-006-P JULY 28, 2011

This information is derived from audit reports of the Office of the Inspector General. The source refers to the audit report, which is available on this site as part of the Audit Database Project: an educational tool for compliance with USAID regulations.  Please see the disclaimer of this site before using this information.

Tags: Financial Management and Budgets

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